Figure 17.1 depicts a firm's marginal revenue product curve. If the firm maximizes its profit and the hourly wage is $15, how many hours of labor will the firm demand?
A. smaller than 30 hours
B. between 30 hours and 40 hours
C. between 40 hours and 50 hours
D. greater than 50 hours
Answer: B
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Refer to Figure 2-9. What is the opportunity cost of producing 1 snow cone in Iceland?
A) 2/3 of a popsicle B) 3/4 of a popsicle C) 1 1/2 popsicles D) 180 popsicles
A bank that maintains high NSF fees might also have relatively __________ loan rates, both part of a strategy to attract __________-than-average borrowers
A) low; safer B) low; riskier C) high; safer D) high; riskier
A monopolistically competitive industry has
A. a differentiated product and barriers to exit and entry. B. a differentiated product and ease of exit and entry. C. identical products and barriers to exit and entry. D. identical products and ease of exit and entry.
Suppose the domestic price (without international trade) of wheat is $3.50 per bushel in the United States while the world price is $4.00 per bushel. Assuming the small-country model is applicable and no transportation costs, the United States will
A. have a domestic shortage of wheat. B. neither export nor import wheat. C. export wheat. D. import wheat.